Editorial, 07/14/2007 - Wage-idea promising, but needs airing

 

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By THE NEW MEXICAN
July 13, 2007

For a far-flung part of a nation whose minimum wage remains $5.15 an hour, Santa Fe is pretty progressive:

In 2003, the City Council enacted a three-step “living wage” ordinance: It began in 2004 at $8.50 an hour. It’s been $9.50 since the start of 2006, and debates were about to begin on a raise to $10.50 that would take effect at the beginning of next year.

It was tough for many businesspeople to swallow — but in its early stages, said The University of New Mexico’s Bureau of Business and Economic Research, it didn’t keep Santa Fe’s economy from growing.

The bureau will be issuing another report next month — focusing on employment and wages since the ordinance took effect.

Whether living-wage advocates are anticipating less-than-good news, or whether businesspeople were preparing to balk strongly at $10.50, nervousness was building up over that last dollar jump.

To the credit of city leaders, the business community and the Living Wage Network, they talked things over — and arrived at a compromise: No $10.50 minimum next year — but yearly cost-of-living-adjusted raises starting in January, 2009. And the living-wage ordinance no longer would apply only to businesses with 25 or more employees; all employers in the city would pay the Santa Fe minimum.

This means mom-and-pop operations would be hit with demands to nearly double their workers’ wages.

We wonder how many of them were represented in the negotiations. The Santa Fe Lodgers Association, the Chamber of Commerce and the Santa Fe Business Alliance, representing some of the town’s smaller establishments, were in on Thursday’s announcement of the compromise — but how many stores and cafes are so tiny they haven’t the time or money for any representation? Could they be faced with laying off their few employees — and working themselves to death to keep the place going?

They’ll have to find time to voice their concerns at the three public hearings to be held on this new wage proposal. Meanwhile, city councilors should ask themselves if there’s another number they should plug into the ordinance: Instead of 25 being the living-wage threshold, what about 10? Or 5?

The 25-employee point has been a sticky one, especially when it comes to franchise operations: Do you count the workers at one store, all the stores in Santa Fe, or all the stores all over the world? The proposed new ordinance would make that a moot point — but at what cost to free enterprise down at the entry level? Can mini-businesses raise prices to cover the new wages and continue to compete? In this community of high prices, perhaps — but it’s a question worth raising.

Anyone who’s had to cope with the cost of being a Santa Fean knows that even $9.50 is nowhere near a living wage, even if both of a family’s parents, and maybe a kid or two, are bringing home paychecks.

The businesspeople of our community have long known that; many of them pay more than the local minimum. But how many can afford to go on rewarding their most loyal employees with wages how far above Santa Fe’s starting pay?

Judging from the support that’s been gathered for the compromise, much of it appears to have been worked out — but that issue, too, must be aired at the hearings.

As for part-time workers, they’ve been covered so far under the living-wage ordinance. A cautious Councilor Karen Heldmeyer wants assurance that hasn’t changed, so she’s withholding her support until she’s given the compromise a good read. Chances are she’ll find many points demanding clarification; so might her colleague Patti Bushee, who wants a closer look at the cost-of-living provisions. The rest of the council should give it the fine-tooth-comb approach.

From what has emerged so far, this proposal, and the consensus-gathering that’s gone into it, are encouraging.